As you know, it is the beginning of March, and the start of a new month means I write and publish another watchlist of potentially undervalued dividend growth stocks.
I sat down at my computer today, ready to screen for stocks, analyze their charts, and do some research into debt and cashflow levels just as I usually do. When I started researching today, I found that the stocks I was picking were not stocks that I would be purchasing myself.
Up to this point, I have bought and held every watch-listed stock that I have shared and am very pleased to say that these picks have outperformed the market.
But now, with a portfolio that is built of 29 strong dividend payers, I feel that it is no longer smart for me to continue adding positions.
Though there are plenty of other good stocks out there with awesome buying opportunities right now, it doesn’t make sense for me to add them to my portfolio. It doesn’t feel right for me to research and share stocks that I won’t buy and hold myself.
Therefore, going forward there will be no more monthly stock picks.
Instead, I will do a deep dive into a dividend stock of my choosing (possibly with the added help of Twitter polls to influence my choice). Like my watchlist, this stock will be one that is fundamentally undervalued, a strong dividend payer, with good timing to buy and take advantage of gains and dividends.
This monthly stock will be one that I will personally look to buy throughout the month, and because I am not actively looking to add more positions, there is a strong chance that these deep dives will be on positions we already have.
These monthly deep dives will be an exercise in reviewing our positions in order to identify good times to add or liquidate if needed and that research and decision making will be shared on this website here for your benefit.
However, if there are opportunities I can’t pass up, or if I reorganize the portfolio, these monthly deep dives can still be used to analyze potential new positions
So by all means, still treat these monthly deep dives as a monthly stock pick. Now that our portfolio’s positions are established, the purpose of this due diligence is to strengthen our conviction in our holdings and identify good timing to build these positions.